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Isa savers 'missing out on £362 million in interest'

By Sarah Engle, Wed 18 Aug 2010 - Published in Banking

Brits could lose out on more than £360 million this year by failing to use their full Isa allowance, it has been claimed.

Research carried out by moneysupermarket.com found that 15 per cent of the UK's 2.6 million Isa savers do not intend to put any money into their accounts this year and could lose out on £138 in tax-free interest.

In addition, 51 per cent of those who are planning on saving will not take advantage of the new £5,100 cash allowance.

According to the group, this means that the UK's Isa savers are failing to benefit from a collective £362 million in tax-free interest over the course of the year.

Kevin Mountford, head of banking at the price comparison website, commented: "It is sign of the times that many traditional Isa savers are deciding not to utilise their tax-free allowance this year."

Last month, Mr Mountford pointed out that high inflation rates are having an eroding effect on the returns generated by Isas.